News Summary

• For much of the postwar era, European policymakers have prioritized stability and predictability over fostering breakthrough innovation.
• Today, as the United States and China compete for AI dominance, a stagnant Europe is struggling to regain its place at the technological frontier.
• MIT’s Simon Johnson sat down with fellow Nobel laureate economist Philippe Aghion to examine what ails Europe and how to revive its dynamism.
• Their conversation addresses the costs of excessive regulation, the role of creative destruction in fostering competition, and the case for keeping AI out of the classroom.